Chase Freedom Flex Review
The Chase Freedom Flex is a great card with a $200 signup bonus for those willing to keep track of its rotating rewards categories.
Highlights:
- $200 bonus on $500 of spending in the first 3 months (40% back)
- +5% gas station cash back on up to $6,000 spent in the 1st year ($300)
- 5% cash back in quarterly bonus categories
- 5% on travel purchased through Chase Ultimate Rewards
- 3% on dining, delivery, and drugstores
- No annual fee
If you’re already sold, feel free to use my promo code for quick access to the $200 signup bonus offer and support my writing in the process!
Note you’ll need Good to Excellent credit to have the best odds of approval which is a 670–850 credit score.
If not, read on as I break down the incredibly attractive value of the Flex.
Benefits
The Freedom Flex is especially handy for organized credit card users that are looking to optimize their spending and squeeze out more rewards from their credit.
The key draw of the flex is the rotating categories that swap every quarter including everything from gas stations to grocery stores, all returning 5% in Ultimate Reward Points.
2022 categories have covered grocery stores, eBay, Amazon.com, streaming, Gas stations, and more.
However, the cashback only applies on spending up to $1,500 in total combined purchases each quarter for a total of $75 in rewards each quarter.
Chase also makes you “activate” the category (logging on and clicking activate) before you start earning every quarter.
Don’t forget that cashback is earned in the form of Ultimate Rewards which we’re valuing at 1 cent per point.
However, many points sites value these points more highly meaning you could get even more bang for your points:
- The Points Guy| 2 cents per point
- Nerd Wallet | 1–1.9 cents per point
- CNBC | .5–4+ cents per point
My personal favorite is to pair this card with the Discover It which is another rotating category rewards card with 5% cashback to maximize the periods in which you have 5% coverage on a category.
Beyond the rotating categories, the Flex also covers travel booked through Chase Ultimate Rewards at 5%, dining in restaurants and takeout at 3%, and drugstore purchases at 3%.
These additional categories just make this card immediately more attractive for general use.
Value
So is the card worth getting?
Well, with no annual fee and upper-tier cashback (5%), there’s not much downside to acquiring the Flex!
The standard hard inquiry, 5/24 rule, and the opportunity cost of getting another card do apply but are not unique to Chase Flex.
We’ve also noted that the signup bonus is worth $200 which provides some immediate upfront value.
In this inflationary environment, the 5% back on gas in the first year could be quite attractive. CNBC reports that US households are spending the equivalent of $5,000 a year on gasoline, which would net $250.
Note there is a cap of $6,000 of spending for rewards on gas, but we haven’t hit that for the purpose of this estimate.
It’s quite difficult to estimate the value of the 5% back on rotating categories given that it’s highly dependent on an individual’s ability to stay on top of it, but it’s possible to get $75 back a quarter or $300 a year if we maximize it.
Pro tips: set a reminder to check when the category changes and tape a little label to the card on what the category this quarter is.
Don’t forget about the additional categories such as 5% back on travel and 3% back on dining and takeout!
It’s estimated that Millenials spend an average of $4,400/yr on vacations, which puts the travel cashback value at $220 (4,400 * 5%).
While the average US household spends $2,375 on dining and takeout purchases, which puts the dining cashback at $71 (2,375 * 3%).
Recapping
- Baseline signup bonus of $200 with an estimated $250 back on gas spend
- Up to $300 of cashback a year by maximizing the quarterly categories
- An estimated $291 in cashback through travel and dining
Note there’s some double-counting as the quarterly categories may overlap with the dining category for a quarter.
If we’re able to maximize all the possible benefits there’s $1041 of value!
Even if we don’t, there’s still the baseline signup bonus of $200 and ~$200/yr in cashback (based on personal experience).
Verdict
The Chase Freedom Flex can take some work to stay on top of the rotating categories, but the 5% cashback may be well worth it.
Even if you’re not willing to stay on top of the rotating categories, the card is versatile enough to cover common categories like travel and dining!
Otherwise, keep your eyes peeled for the Chase Freedom Unlimited review, which is a much more straightforward option.
And best of all, it has no annual fee!
If I’ve convinced you of the Flex’s value, especially for organized users, consider signing up using my referral code for quick access to the $200 signup bonus points offer.
Note you’ll need Good to Excellent credit to have the best odds of approval which is a 670–850 credit score.
For resources on better understanding and improving your credit score, check this out.
